Welcome to my website blog. My goal is to address collection issues including collecting on unpaid invoices, accounts receivables, promissory notes and other debts. I will also highlight important changes in Florida law and notable cases. If anyone reading this blog has any specific questions, please feel free to e-mail me the question and I will try to address same.
Initially, I am offering some good advice on how to prepare for collections, if necessary. I always tell my business clients to obtain as much information as possible from any customer who will ultimately be receiving good and/or services on credit. The social security number of the principal(s) and/or guarantor(s) is most useful because with a social security number a creditor will always be able to locate the principal(s) and/or guarantor(s) should there be a default in payment. There are numerous databases that compile public information that are able to locate a person based upon his or her social security number.
In addition, I recommend obtaining bank account information of the debtor and any guarantor. The debtor should also be required to update this information yearly. Many of my clients wait years after receiving their last payment from a debtor to pursue collection. As a result, once we obtain a judgment and attempt to garnish the bank account based upon the old information, we discover that the account has been closed which is extremely frustrating. It is not uncommon for a debtor having financial problems to change banks frequently to avoid garnishment. Therefore, make sure to require that the bank account information be updated yearly.
This information should not only be requested from potential customers who will be purchasing on credit, but also from any individual who is executing a promissory note for money lent. Obtaining this information will only make the collection process easier because in many cases locating the debtor is the biggest hurdle.